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- 1 Genesis and related firms misled the users and directed them to invest in associated companies- New York Attorney General Letitia James.
- 2 The Earn program of Gemini backed the entire claimed scam, says the Attorney.
- 3 As of writing, the market capitalization of the crypto sector is $1.78 Trillion.
On January 9, New York Attorney General Letitia James broadened her lawsuit against Digital Currency Group (DCG) and other defendants. Earlier, the alleged fraud scheme was worth $1 Billion, but now it has been revised to $3 Billion.
As per archive data, the attorney general has previously sued DCG, Genesis Global Capital Unit, and the exchange owned by the Winklevoss brothers, Gemini. James stated that these firms collectively mislead the investors about Gemini Earn. Gemini Earn is a program that allows customers to lend their crypto assets to Genesis in exchange for competitive returns.
She stated that additional investors have since come forward to complain then, it became apparent that the complex fraud also trapped other investors who sent money directly to Genesis.
The NY General Attorney desires over $3 Billion of repayment for the more than 230k investors she believes are cheated or fooled. The legal debacle between Letitia James and Genesis, Gemini, and DCG started in the last quarter of 2023.
In a statement in October 2023, she mentioned that “Gemini was fully cognizant of the inherent investment risks associated with Genesis and, as a consequence, misled its customers.”
It is crucial to note that Genesis and Gemini are facing a legal battle. Apart from the recent lawsuit, the company was sued by one of its customers who alleged that the platform failed to safeguard the users from a $36 Million theft in cryptocurrencies.
The industry has seen several lawsuits almost every year since Bitcoin was launched.
Bitcoin is the cryptocurrency market leader and the most prominent digital asset with the highest adoption rate. The entire crypto industry has evolved significantly, and from a few crypto projects in 2013, thousands of crypto products are in the market, and many of them are not listed, though.
Crypto Market Update
Since the past 48 hours, the entire crypto market has flourished significantly, and as of writing, the market capitalization of the crypto sector is $1.78. TradingView data states that the market cap saw a whopping growth of 7.46% in the past seven days.
Bitcoin price climbed above $46k, and after registering a growth of 1.30% in the past 24 hours, it was trading at $47,155. Similarly, the second most talked about token in the crypto market, Ethereum, has shown significant development in terms of price. It is trading at $2,491.
Following the constant positivity in the ETH price market, observers started claiming that the surge is driven by Ether spot exchange-traded fund (ETF) hype. Intraday, BONK, a popular meme coin token, grew over 12% and acquired second position on the gainer’s list.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
